Overview

In this assignment, you will apply the steps in the consumer buying process to your purchase of a significant household item.

Using models of bicycles, you will identify target markets. You will also break down the marketing mix (product, price, place, and promotion) for each segment, identifying each element including pricing strategies and tactics.

Outcomes

1. Identify the four components of the marketing mix and their application to target market segments. (D)
2. Interpret the consumer buying process to product marketing decisions. (D)
3. Discuss pricing strategies for different competitive situations and identify pricing tactics. (D)

Instructions

1. Select a product that would be a significant household purchase (i.e., a product that costs more than $500 and something you would purchase every 510 years). Apply the steps in the consumer decision-making process in the modules readings to the purchase of this item. This should not exceed 1 page in length.
2. Using the template provided with three bicycle models, which is based on the following table, fill in the table to depict how these three different models of bicycles are aimed at different target market segments, including how the marketing strategies (price, place, and promotion) are tailored for that segment. This table should not exceed page in length.

   Target Market Segment	Product	Pricing (Strategies and Tactics)	Place	Promotion	Notes
   Most likely potential customers identified by demographics, psychographics, and behavioral characteristics	Model of Bicycle	Research the price of this product.	Where is this product available for purchase?	In this column, note where and how the product is promoted. For example, what tv shows, magazines, unique displays, and coupons promote the product?	Note any special observations about the marketing strategy for this product.
   	Santa Cruz Blur Carbon CC
   	Cannondale Quick 6 Remixte Womens Bike
   	Kent 20 Chaos Boys Bike

3. Include a paragraph summary explaining how the marketing mix differs for each segment in the chart. The summary should not exceed page.

NOTE: Market segments break down a larger market into smaller, more homogenous groups using demographic (age, gender, education, income), geographic, psychographic (consumer-based interests or activities), and behavioral (usage, buying habits) characteristics. The purpose for segmenting a market is to allow your marketing/sales program to focus on the subset of prospects that are "most likely" to purchase your offering.